Will Baby and Toddler Foods Fuel Target’s Private Label Expansion?

Target has expanded its Good & Gather private label brand to encompass food for babies and toddlers as the retailer continues to push its house selection into new product categories. The move could help Target harness the power of private label growth in a category where quality is top of mind, building loyalty with shoppers while boosting sales for the company.

Private label products have been steadily shedding the perception that they are inferior to national brands, and rising food prices have accelerated this transformation. A recent survey by Attest found that 58% of Americans are “very likely” to purchase private label items, while another 27.3% are “somewhat likely” to buy private label products. In comparison, less than 4% said they are “unlikely” to buy private label brands.

Additionally, a study by FMI found that 41% of consumers have purchased more private brands since 2020, and 30% say that higher grocery prices were the reason for doing so, according to SmartBrief.

All Good & Gather products, including the new baby and toddler foods, play into private label brands’ newfound status as high-quality products. The entire label is free from artificial flavors, synthetic colors, artificial sweeteners, and high fructose corn syrup. The latest additions to the line aim to combine an emphasis on health with items that will appeal to little ones, including teethers, yogurt bites, bars, and biscuits in flavor combinations ranging from strawberries and beets to apples, cinnamon, and spinach.

Price matters too, and most of the new items will be $5 or under. While inflation may be slowing down, it remains at the top of many shoppers’ minds, and parents in particular are looking for economic relief wherever they can find it. A December 2022 study by the Pew Research Center found that 25% of parents said there were times in the past year when they weren’t able to afford food for their family or pay their rent or mortgage. Having a less expensive option from an established brand could help Target bring in these shoppers and keep them in its stores.

Good & Gather’s kid-focused assortment is expanding beyond toddlers as well. The company is also launching an “assortment of new lunchbox-sized items” in time for the back-to-school season, Target Chief Growth Officer Christina Hennington said on a call with investors. Rolling out affordable food options for children of all ages could be a great strategy for Target to fuel its growth and continue outpacing Walmart.